Which of the following refers to a special type of inventory system in which the needed amount of each component of a product is figured on the basis of the amount of the final product to be produced?
A) The six sigma system
B) The economic order quantity system
C) The material requirements planning system
D) The ABC classification system
E) The kaizen system

Question

Quizplus · Accepted Answer

The material requirements planning system (MRP) is a special type of inventory system that helps a business determine what materials it needs to produce a product. MRP calculates the quantity of each component required for a specific product, based on the amount of the final product that is to be produced. This allows businesses to efficiently plan and manage their inventory levels. The other options mentioned (six sigma, economic order quantity, ABC classification, and kaizen) are not specific to this type of inventory system.

Which of the Following Refers to a Special Type of Inventory